Romania: Economy returns to growth in the second quarter
The economy rebounded strongly in the second quarter, with GDP expanding 13.0% year-on-year, swinging from the 0.2% contraction recorded in Q1.
Underlying momentum, however, seemingly lost steam as the economy expanded 1.8% on a seasonally-adjusted quarter-on-quarter basis in Q2. This was down from the 2.5% increase recorded in the first quarter.
A detailed breakdown of national accounts data for the second quarter will be released on 7 September.
Looking ahead, the economy should record a solid expansion in the year as whole on the back of firming domestic demand and healthier external trade. Moreover, large inflows of EU funds, particularly from the recovery fund, should further buoy activity. The outlook is clouded, however, by delays in the approval of the country’s recovery plan and the emergence of more infectious strains of the Covid-19 virus.